Amid the deepening crisis in the Kerala Transport Development Finance Corporation Limited (KTDFC), which has been starting at a bleak future after lending loans to crisis-ridden Kerala State Road Transport Corporation, the State government on Thursday removed B. Ashok, Chairman and Managing Director (CMD) of KTDFC, from his position and appointed Biju Prabhakar, Transport Secretary, as the new CMD of the KTDFC. However, Ashok reportedly told the media that he was replaced from the post upon his request.
The non-repayment of loans paid to the KSRTC and new regulatory norms like stoppage of further deposit-taking activities by the RBI had in fact jeopardised KTDFC’s deposit operations, finding it difficult to even carry out day-to-day business including repayment of term deposits on maturity. The present income of KTDFC is sufficient to maintain its rented real estate properties and footing the salary bills of staff.
Meanwhile, the State government is planning to mortgage or sell the properties of KSRTC to repay the loans taken from the KTDFC. The Finance Department has given permission for KTDFC to sell or mortgage KSRTC’s assets like shopping complexes in Kozhikode, Angamaly, Thiruvalla, and Thiruvananthapuram to raise funds.
